VOL. 126 | NO. 111 | Wednesday, June 8, 2011
Oxbow Mining Accuses Railroads of Price Fixing
JOSH FUNK | AP Business Writer
OMAHA, Neb. (AP) – Oxbow Mining says the Union Pacific and Burlington Northern Santa Fe railroads conspired to raise prices on customers like the Colorado coal mine Oxbow runs.
Forth Worth, Texas-based BNSF also operates the Tennessee Yard intermodal facility at Lamar Avenue and Shelby Drive
Oxbow filed a federal antitrust lawsuit against the two biggest railroads in the western United States on Tuesday.
Oxbow's Chairman and CEO Bill Koch says the railroads have been systematically gouging their customers for years, and those higher shipping costs are passed on to consumers.
Oxbow says UP and BNSF worked to avoid direct competition with each other to help keep rates high.
And Oxbow complained that the fuel surcharges both railroads charge aren't based on costs and simply help the railroads raise shipping rates.
Representatives of the Omaha-based Union Pacific and BNSF did not immediately respond to messages left Tuesday.
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